Our analysis in this chapter suggests that individuals have a utility-maximizing amount of information. Explain why some degree of ignorance is optimal.  Explain why the slope of the market line in...

Our analysis in this chapter suggests that individuals have a utility-maximizing amount of information. Explain why some degree of ignorance is

optimal.

 Explain why the slope of the market line in Figure

4.4 and Figure 4.5 shows how risk is ‘‘priced’’ in

this market. How might the data in Application

4.4 be plotted to determine this slope?